JOURNAL ENTRYS NEED TO BE COMPELTED FOR PART 1 RECORD THE DEPOSITS COLLECTED REC

Question

JOURNAL ENTRYS NEED TO BE COMPELTED FOR PART 1

RECORD THE DEPOSITS COLLECTED

RECORD THE CONTAINERS RETURNED

RECORD THE DEPOSITS FORFEITED- RECORD REVENUE

RECORD THE DEPOSITS FORFEITED- ADJUST INVENTORY

Diversified Semiconductors sells perishable electronic components. Some must be shipped and stored in reusable protective containers. Customers pay a deposit for each container received. The deposit is equal to the container's cost. They receive a refund when the container is returned. During 2018, deposits collected on containers shipped were $896,000. Deposits are forfeited if containers are not returned within 18 months. Containers held by customers at January 1, 2018, represented deposits of $625,000. In 2018, $834,000 was refunded and deposits forfeited were $40,750. Required 1. Prepare the appropriate journal entries for the deposits received and returned during 2018. 2. Determine the liability for refundable deposits to be reported on the December 31, 2018, balance sheet Complete this question by entering your answers in the tabs below Required 1Required 2 Prepare the appropriate journal entries for the deposits received and returned during 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 4 Record the deposits collected. Note: Enter debits before credits Event General Journal Debit Credit

Explanation / Answer

Event General Journal Debit ($) Credit($)

1. Cash 896000

Liability- Refundable deposits 896000

2. Liability- 834000

Refundable deposits- Cash 834000

3. Liability- Refundable deposits 40750

Revenue- Sale of Containers 40750

4. Cost of goods sold 40750

Inventory of container 40750

(B) Determine the liablity for refundable deposits balance on 31 dec, 2018

Balance on Dec, 2018 $646250

Working notes: Balance on jan1 $625000

Deposits received $896000

Deposits returned ($834000)

Deposits forfeited ($40750)

Balance on DEC, 2018 $646250

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